ArmInfo.Armenian winegrowers on September 1 in the city of Armavir protested, demanding a revision of the pricing policy.
According to one of the participants of the action - wine grower Karen Sissakian, despite state subsidies for processing enterprises, the purchase price of grapes has been reduced the latter up to 135 drams per kilogram against 150-160 drams for technical grapes for the production of cognac last year. As for technical grapes for wine production, last year the purchase price for it was 220-240 drams per kilogram against 160 drams this year. Moreover, these prices were imposed on winegrowers by the Proshyan Brandy Factory, there is no data on the Ararat Brandy Factory yet, and the Yerevan Brandy Factory "Noy", according to farmers, generally offers 130 AMD per kilogram. Basically, farmers represent the settlements of the Armavir regions - Sardarapat, Bambakashat, Aygevan, etc. Farmers are associated with buyers with long-term contracts in which the cost of goods is not determined, the price is determined for each year. Moreover, many growers found themselves outside the programs. <They called me and said that they could not accept 50 tons of grapes without explaining reasons>, - another protester complained, insisting on purchases, albeit at 150 AMD per kilogram, but in the same volumes.
Deputy Governor of Armavir Region Karen Grigoryan arrived to meet with the villagers. He noted that at a meeting held yesterday in the regional administration, the farmers were informed that some enterprises, due to the current circumstances, are not able to purchase grapes in the same volume. But there are also enterprises that agree to purchase a quality product in the required quantity. The pricing policy, according to Karen Grigoryan, is determined by the buyer-farmer relationship, and state institutions do not participate in this process. The Deputy Governor offered the farmers the names and phone numbers of specific individuals who could be contacted to resolve the issue.
However, the vice-governor's statements did not convince the winegrowers, who gathered in the meeting room of the regional administration.
It should be reminded that at the meeting of the RA government on August 13 the 24th program of anti- crisis measures was approved, according to which Armenian enterprises engaged in the production of wine and brandy will receive state assistance. As the Minister of Economy of the Republic of Armenia Tigran Khachatryan noted then, the coronavirus had a significant negative impact on the production indicators of winemakers. The demand for products dropped significantly, and the volume of exports also decreased, which, in turn, led to a decrease in production volumes. According to preliminary data, the decline in the sector was about 30%, and even more at some enterprises. As a result, grape procurement companies faced serious financial difficulties and a shortage of working capital. In these conditions, according to the minister, the country's commercial banks began to show caution, reluctantly lending to these enterprises. Meanwhile, as Tigran Khachatryan noted, a significant grape harvest is expected this year, which will surpass the indicators of previous years. At the same time, companies need financial resources to re-equip production facilities and purchase new containers. For this reason, it is proposed to improve the terms of lending to companies that procure grapes. In particular, the state will fully finance the interest rates on attracted loans. the loan repayment period is extended from 18 months to 24 months. At the same time, the maximum loan amount per beneficiary is increased from 1.8 billion drams to 3 billion drams. The grace period for payments from 2.3 months is extended to 3-6 months. Also, payments under the excise tax line in the amount of 100 AMD for 1 liter of cognac alcohol and brandy are subject to refund. For loans attracted in 2019, their maturity dates are also extended from September-October 2020 to December of the same year. In order to modernize production facilities and purchase containers, the maximum loan size from 450 million drams will increase to 1 billion drams.
Note that in January-May 2020, the production volumes of alcoholic beverages produced in Armenia demonstrate a downward trend. According to the data of the Statistical Committee of the Republic of Armenia, during the reporting period, the volumes of absolutely all alcoholic beverages produced in Armenia decreased. So, in January-May 2020, 12.5 million liters were produced in Armenia. brandy, which is 14.9% less than a year ago (against 39.5% growth in the same period in 2019). The volume of wine produced in Armenia reversed the annual dynamics from 28.7% growth towards 28.3% decline to 3.3 million liters, champagne - from 17.1% growth to 31.9% decline up to 137.2 thousand liters The production of vodka also decreased - by 29% (against growth by 29.3% a year earlier) to 1.2 million liters, and beer - by 16.1% (against growth by 24.7% a year earlier) to 7.1 million liters. ... According to statistics, 95.3 thousand liters were produced in Armenia during the reporting period, which is 68.3% less than a year ago. In the same period last year, there was also a decline in the volume of whiskey production, but the pace was much more modest - 18%.
